Finding the right business to buy can be challenging and most people who look into buying a business never do. At VR Business Brokers we know that by doing our job professionally and following the following steps we greatly increase the chances of our buyers finding the business they are looking for.
COMMITMENT:
Your commitment to purchase a business that is compatible with your abilities and needs and at the price and terms consistent with the marketplace is the first step.
BACKGROUND INFORMATION:
There are literally thousands of businesses for sale at any one time. Most of them will never meet your criteria. By doing a proper confidential interview of you our associates can obtain the information they need to help find you the right business, not just try to sell you the one at their fingertips. Our associates are trained to listen to you to determine what your wants, needs, and abilities are. This not only saves you a tremendous amount of time kicking tires, it gives our associates the information they need to structure a deal that makes sense to you.
REVIEW:
Together we will discuss and review various types of businesses and select some that appeal to you. We will then set a meeting with the seller. This gives you the chance to ask questions you may have about the business operation and to describe your qualifications to the seller.
OFFER TO PURCHASE:
You write, with our assistance, an offer or a letter of intent for the business you like.
- Earnest money may be required to demonstrate the seriousness to the seller.
- Most offers are contingent upon your inspection of the books and records of the business.
- The offer is not binding until you remove all contingencies.
PRESENT OFFER:
The next step is to present your offer to the seller along with your background, financial information, experience and point of view in arriving at the offering price, your the terms and your conditions. Favorable background information about you will result in favorable consideration of your offer. We carefully explain the terms and conditions of the offer to the seller and decision makers.
ACCEPTANCE:
When buyer and seller agree to all terms and conditions of the sale, the offer becomes the preliminary Purchase and Sale Agreement. Both parties agree that if all of the terms and conditions can be satisfied they have a deal.
DUE DILIGENCE:
Before the preliminary Purchase Agreement becomes binding you be given the time to perform your due diligence. You and your advisors meet with the seller and his accountant to examine the financial records. Landlords and other third parties such as franchisors are contacted during this time to satisfy and remove any contingencies to the offer.
OPEN ESCROW:
Once the financial records have been approved by the buyer and all contingencies have been addressed we open escrow. Escrow is a neutral third party that will draw up the final contracts and hold the buyer’s funds until all conditions are satisfied to close the sale. Escrow also does a lien search to be sure the business can be transferred free and clear to the buyer and finalizes all the steps necessary to complete the sale including the assignment of the lease or any other contracts the buyer may be assuming.
INVENTORY:
Many sales include the transfer of inventory. In the original Purchase Agreement buyer and seller have agreed to either hire an outside service or to count and price the inventory themselves. Just before closing the sale the inventory is counted and any adjustments necessary are made to the final purchase price and terms.
TRANSFER OF OWNERSHIP:
All parties meet to sign all closing documents. Congratulations, you are the proud owner of your own business.